Nickel yesterday traded with the positive node and settled 0.06% up at 935.1tracking three months opened at USD 18,450/mt and closed at USD 18,225/mt last Friday night, down USD 194/mt, with the highest price at USD 18,600/mt and the lowest price at USD 18,144/mt. LME nickel prices continued to drift lower. Although LME nickel prices were temporarily boosted by China’s cut in bank requirement reserve ratio, the US February’s lower-than-expected new home sales data weighed on US equity market and LME nickel prices to hit a low a USD 18,144/mt. Finally, LME nickel prices erased partial losses but still closed at USD 18,225/mt. The dollar continued to slip last week, but conditions in the euro zone were not optimistic. The slightly improved market sentiment following implementation of ECB 3rd round 3-year LTRO seemed to deteriorate further, weighing on the euro to certain extent. Generally speaking, LME nickel prices were weighed down last week on negative global economic news, but LME nickel prices are expected to stabilize to certain extent as market has absorbed negative impact from these news. For today's session market is looking to take support at 934.1, a break below could see a test of 933.1 and where as resistance is now likely to be seen at 935.9, a move above could see prices testing 936.7.

Trading Ideas:

Nickel trading range for the day is 933.17-937.

Nickel prices were temporarily boosted by China’s cut in bank requirement reserve ratio

The slightly improved market sentiment following implementation of ECB 3rd round 3-year LTRO seemed to deteriorate further

China's nickel production dropped by 2% to 21,391 metric tons in February 2012 on m-o-m basis